Xstrata said it was investigating options for the project’s development as the feasibility process continued.

“This includes the potential to introduce an additional partner into the project where this represents value for our shareholders and the best outcome for all stakeholders including the Wandoan community and the state of Queensland,” Xstrata said.

“The project will require significant capital investment to establish new and port infrastructure. Wandoan is the largest coal development in Queensland and will be a critical factor in establishing the Surat Basin as Australia’s next major export thermal coal producing region.”

The statement follows a report in the Wall Street Journal that Xstrata was close to approving construction of the $6 billion Wandoan project and had already appointed Macquarie Capital to assist the sale of a 20% stake.

The newspaper further reported that this sales process was enigmatically codenamed “Project Thatcher” and included offering offtake rights for up to 12.6 million tonnes of coal per annum.

Initial development of Wandoan is targeting 22Mtpa of product thermal coal while there are expansion plans to hit 63Mtpa and beyond – but this will be dependent on the availability of port and rail capacity.

While the giant open cut project has faced considerable resistance from farming interests and green groups, and was under a cloud of uncertainty during the drama around the doomed super profits tax in 2010, Xstrata said it remained committed to Wandoan.

“It is an important part of the company’s organic growth pipeline,” Xstrata said.

In August, Xstrata managing director Mick Davis said Wandoan could be in production by 2015 for at least a 30-year mine life.

The Wandoan project is a joint venture between Xstrata (75%) and its Japanese partners Itochu (12.5%) and Sumitomo (12.5%).